BackRupee ends 10 paise lower at 82.17 against the US dollar; posts best week in four
The US dollar index, which measures the US currency against six major rivals, was at 99.786, holding near the 15-month low of 99.574 hit earlier in the session and set for its biggest weekly decline since November
PremiumThe Indian rupee ended 10 paise lower against the US dollar on Friday, snapping four sessions of gains, dragged by corporate dollar demand. The local currency ended at 82.17 a dollar as compared to the previous close of 82.07.
Rupee had hit a near two-week high of 81.94 in early trades, and logged its best week in over four, rising 0.5%, helped by a sell-off in the dollar on expectations the US Federal Reserve's interest rate hike cycle was near its end.
The dollar index, which measures the US currency against six major rivals, fell to a fresh 15-month low and is down 2.4% so far this week, after a data showed that inflation was easing in the US.
“Though the dollar index has plunged below 100, the reaction in rupee is limited as there is a sense of fear that if the greenback reverses, then the rupee might go back to 82.40-82.50 levels," said Arnob Biswas, FX research head at SMC Global.
This is the reason why importers are jumping to hedge their exposures, he added.
Crude oil prices traded flat, with Brent crude futures easing 0.04% to $81.33 per barrel, while US West Texas Intermediate crude futures also falling 0.04% to $76.86.
On the domestic front, the Indian equity benchmark indices, Sensex and Nifty settled at their fresh record closing highs on Friday led by gains in IT heavyweights and positive global cues.
Sensex closed 502.01 points, or 0.77%, higher at 66,060.90, while the Nifty surged 150.75 points, or 0.78%, to close at 19,564.50.
On Tuesday, the Foreign institutional investors (FIIs) net bought Indian equities worth ₹2,237.93 crore, while Domestic Institutional Investors (DIIs) net sold shares to the tune of ₹1,196.68 crore, as per provisional data available on the exchanges.
(With inputs from Reuters)
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